Literacy Capital PLC (LSE:BOOK) said it has completed the sale of its interest in Hometree in full, generating £3.8mln of cash for the company.
The sale was a profitable one for the closed-end investment group, generating a 130% return and an investment return rate (IRR) of 6.8%.
On receipt of the cash consideration, Literacy Capital said it paid down existing borrowings and pledged the remainder to alternative investments in due course.
The sale price agreed was in line with the carrying value that the asset was held at in recent factsheets, so has no impact on the company’s net asset value
In a statement, Literacy Capital chief executive Richard Pindar commented: "This sale sees Literacy exit one of its few remaining growth capital investments.
“This is in line with Literacy's stated objective to focus for new investment activities and its capital on the buyout of profitable, private businesses, rather than more risky investments into earlier stage, growth capital or venture investments.”
Pindar also noted that Literacy Capital’s net assets invested in growth capital have more than halved since this time last year.